The youngsters had reached the quarter-finals of the Europe-wide Premier League International Cup after finishing top of a group including Man City, Borussia Monchengladbach and Athletic Bilbao.

But their European adventure came to an end at the hands of PSV in the last eight, who recorded a 1-0 win at the Stadium of Light.

Welsh says the competition has been a steep learning curve for the players.

“PSV upped the tempo a little bit in the second half, but I think it was a really tight game, it was like a game of chess at times,” he said.

“I thought tactically we were very good, but it’s fine margins at this level.

“We just couldn’t find that finish or that cutting edge in the final third – we had lots of possession, we finished very strongly and I don’t think we can ask much more from the lads.

“I thought the performance was excellent, we just lacked a bit of cutting and edge and a bit of luck, the ball didn’t drop for us.

“There were one or two contentious decisions as well, that maybe didn’t go our way, and on another day they go your way.

“Overall I’m quite satisfied with the performance but disappointed to go out of the tournament, because it’s been such a learning experience for the club and all the young players.”

Striker Andrew Nelson was felled in the box in the second half after bursting down the byline, but he was harshly booked for diving.

“I thought it was a penalty – I don’t see why he would go down because he was goal-side of the defender. But it’s the referee that matters and he didn’t give it,” Welsh said.

Rees Greenwood was a bright spark for Sunderland on the left flank, and Welsh says he is an “excellent talent”.

“He got into the box in good areas, his dribbling skills with his left and right foot are very good,” he said.

“He’s a big talent, and these sorts of nights are what we play in this tournament for. I thought he was excellent – he just needs to get his shots off quicker, at this level you’ve got to take them quicker, you’ve got to be faster.

“But he’ll learn that, he’s an excellent talent and these sorts of nights will do him the world good.”

Sunderland had seven under-18s players in the squad, which is proof to Welsh that the whole youth set-up is going in the “right direction”.

“Ultimately PSV looked a bit older than us and a bit stronger. But it was good for Sunderland football club to get this far – we qualified out of a difficult group, we were very unlucky in certain situations tonight,” he said.